Dollars To Pounds Daily Candle Chart - GBP/USD 26th May 2009

Dollars To Pounds Daily Candle Chart - GBP/USD 26th May 2009

Yesterday’s candle on the dollars to pound currency chart simply reflected the total lack of trading volume as a result of a national holiday in both the US and the UK, opening and closing the session at the same price and much the same as for Friday’s action.  With the currency market more or less now discounting the Standard and Poor’s possible downgrade to the UK’s AAA credit rating, the pounds to dollars pair look set to continue their upward trajectory and our initial price target of 1.60 now looks increasingly likely and if this is breached should clear the way to a possible move to 1.65 or above.  Even the North Korean crisis has only had a muted effect on this pair as cable consolidates in readiness for a move higher.  From a technical perspective all three moving averages are pointing sharply to the upside which is where we expect to see prices move in the next few days.  This morning’s temporary dip has provided some excellent buying opportunities for longer term position trading in much the same way as for the euro dollar and with little fundamental news on the economic calendar (other than CB Consumer Confidence in the US this afternoon) we need to wait until later in the week for more substantial news items.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.